Sound Energy secures financing for Morocco gas development project

UK-based Sound Energy plc expects to advance the second development phase of the Tendrara production concession in Morocco having received a project financing offer of up to $237 million.

Loan proceeds are expected to be used for design, drilling, construction, and operation of wells, a treatment plant, and a gas pipeline to transport and sell natural gas, Sound Energy said in a release June 28.

The loan is subject to certain conditions being met by September 2023.

“The majority of the conditions precedent to their offer are to be expected and as a result the company has been advancing a number of these for these for some time. We look forward to working with the arranger to conclude on what will be the first financing of its size for a gas field development in Morocco and further announcements will be made, as appropriate, in due course,” said Graham Lyon, executive chairman.

Sound Energy holds a 75% stake in the concession. Morocco’s National Bureau for Hydrocarbons and Minerals holds the remaining 25% (OGJ Online, Feb. 16, 2022).